🔴 AVGO is trading 12% down today after strong earnings overshadowed by margin concerns and cautious AI outlook

AVGO is trading at $359.50 (-11.53%), down sharply despite beating Q4 earnings estimates, driven by the CEO's warning that gross margins will fall due to less profitable AI hardware sales.

• Q4 results included 28% revenue growth and a 74% surge in AI sales.
• The CEO projected gross margins would fall by approximately 100 basis points, citing the lower profitability of current AI hardware.
• Pressure was compounded by a vague 2026 AI demand outlook and broader tech contagion (NASDAQ -1.28%).